Maximum total loss (drawdown)
The Maximum Total Loss (Drawdown) is the maximum loss you are allowed to incur overall during the challenge – regardless of the time period. It includes losses, fees and open positions.
Overview of all models
| Model | Limit | Type |
|---|---|---|
| Instant Funding | 5% | Static |
| 1-Step Challenge | 6% | Static |
| 2-Step Challenge | 8% | Static |
| 2-Step Flex | 12% | Static |
Calculation
The drawdown is static: the level is set at the start and stays the same from start to finish. It does not follow your profits upwards.
Important: The drawdown includes all losses, fees and also open positions. If you fall below the limit, your account will be stopped.
Examples
Instant Funding (5%) — $100,000 account
The drawdown stays fixed at $95,000 ($100,000 minus $5,000), regardless of profits.
1-Step Challenge (6%) — $100,000 account
The drawdown stays fixed at $94,000 ($100,000 minus $6,000), regardless of profits.
2-Step Challenge (8%) — $100,000 account
The drawdown stays fixed at $92,000 ($100,000 minus $8,000), regardless of profits.
Important Notes
- Unrealized losses from open positions count
- If exceeded, the account is stopped immediately
- Static drawdown – the level stays the same from start to finish
Frequently asked questions
Does the drawdown rise with my profits?
No. The drawdown is static for every model. It is calculated once from your original account balance and does not move.
Do open positions count?
Yes, the current account value (including open positions) must not fall below the drawdown limit.
What happens if it is exceeded?
The account is stopped immediately and the challenge / the funded account is terminated.